Tax Newsletter OCTOBER 2021

DLO’S Tax Newsletter

Issue 123 October 2021

Tax Law Update
1. CIT exemption in the amount of the expenses paid for the electronic system for preparing, receiving data, remitting taxes system and the expenses which is a service fee paid to the service providers for preparing, delivering electronic data, and remitting taxes
2. Extension of the VAT filing period for the electronic services provided from foreign country
3. Income tax exemption to the Stock Exchange of Thailand for a subsidy income received from the Thailand Capital Market Development Fund
4. Income tax and VAT Exemption to the persons, company and juristic partnership for the money or assets donated for the Prime Minister’s Office in some cases

Tax News
1. SBT exemption to the juristic persons for an income of compensation received according to the real estate expropriation law and stamp duty exemption for the execution of instruments regarding real estate expropriation
2. CIT exemption for the expenses paid for COVID 19 Antigen Test Kit
3. Income tax exemption for a compensation paid to the officials monitoring, examine, prevent and cure the COVID 19 patients

Interesting Deka
Deka (Supreme Court Judgement) No. 4980/2561
Between  Company Or.            Plaintiff
       The Revenue Department    Defendant
Issue: Failing to file Por.Phor. 30 within the prescribed time without reasonable cause

Tax Law update
1. CIT exemption in the amount of the expenses paid for the electronic system for preparing, receiving data, remitting taxes system and the expenses which is a service fee paid to the service providers for preparing, delivering electronic data, and remitting taxes.

Notification of the Revenue Department’s Director regarding CIT exemption for the expenses paid for the electronic system for preparing, receiving data, remitting taxes system and the expenses which is a service fee paid to the service providers for preparing, delivering electronic data, and remitting taxes since 1 January 2020 until 31 December 2022.

To be eligible for this exemption, a taxpayer must comply with the rules, procedures, and conditions prescribed by the Director-General of the Revenue Department.

For more details, please see: https://www.rd.go.th/fileadmin/user_upload/kormor/newlaw/dg406.pdf

2. Extension of the VAT filing period for the electronic services provided from foreign country
Notification of the Ministry of Financial being effective since 1 September 2021, extending the VAT return (P.P.30.9 Form) filing and VAT payment via internet network period for the VAT registrant providing electronic services from foreign country or the electronic platform provider in foreign country from within date 15 of the following month to within date 23 of the following months.

To be eligible for this exemption, a taxpayer must comply with the rules, procedures, and conditions prescribed by the Ministry of Financial.

For more details, please see: https://www.rd.go.th/fileadmin/user_upload/kormor/newlaw/mfves_expand.pdf

3. Income tax exemption to the Stock Exchange of Thailand for a subsidy income received from the Thailand Capital Market Development Fund

The Royal Decree No. 722 being effective since 15 September 2021, exempts income tax for the Stock Exchange of Thailand for income subsidized from the Thailand Capital Market Development Fund for the improvement of competition capability of the Stock Exchange of Thailand or extraordinary circumstance and financial support necessity.

To be eligible for this exemption, a taxpayer must comply with the rules, procedures, and conditions prescribed by the Royal Decree.

For more details, please see: https://www.rd.go.th/fileadmin/user_upload/kormor/newlaw/dc722.pdf

4. Income tax and VAT Exemption to the persons, company and juristic partnership for the money or assets donated for the Prime Minister’s Office in some cases

The Royal Decree No. 723 being effective since 15 September 2021, exempts PIT or CIT for the donation via electronic system to the Prime Minister’s Office for solving the COVID 19 problem and exempts VAT for the VAT registrant especially for the goods donation to the Prime Minister’s Office for solving the COVID 19 problem.

To be eligible for this exemption, a taxpayer must comply with the rules, procedures, and conditions prescribed by the Royal Decree.

For more details, please see: https://www.rd.go.th/fileadmin/user_upload/kormor/newlaw/dc723.pdf

Tax News
1. SBT exemption to the juristic persons for an income of compensation received according to the real estate expropriation law and stamp duty exemption for the execution of instruments regarding real estate expropriation

On 9 September 2021, the cabinet passed a resolution approving a draft of the Royal Decree according to the Revenue Code regarding SBT exemption to the juristic persons for an income of compensation received according to the real estate expropriation law and stamp duty exemption for the execution of instruments regarding real estate expropriation since 30 May 2019.

To be eligible for this exemption, a taxpayer must comply with the rules, procedures, and conditions prescribed by laws.

For more details, please see: https://www.thaigov.go.th/news/contents/details/45605

2. CIT exemption for the expenses paid for COVID 19 Antigen Test Kit

On 15 September 2021, the cabinet passed the resolution giving in principle approval to the draft of the Royal Decree regarding tax exemption (tax measure for supporting the expense paid for COVID 19 Antigen Test Kit) as follows:

1) CIT exemption for the company or juristic partnership for the 50 percent of the expense paid for COVID 19 Antigen Test Kit used by the employees since the date that resolution passed by the cabinet until 31 March 2022.
2) The Royal Decree shall be effective since the day after following the date of its publication in the Government Gazette

To be eligible for this exemption, a taxpayer must comply with the rules, procedures, and conditions prescribed by laws.

For more details, please see: https://www.thaigov.go.th/news/contents/details/45805

3. Income tax exemption for a compensation paid to the officials monitoring, examine, prevent, and cure the COVID 19 patients

On 21 September 2021, the cabinet passed the resolution giving in principle approval to the draft of Ministerial Regulation regarding income tax exemption for a compensation paid to the officials monitoring, examine, prevent, and cure the COVID 19 patients from the Ministry of Public Health for another 1 year (for the assessable income of tax year 2564) for supporting and encouraging the officials executing regarding COVID 19 situation.

To be eligible for this exemption, a taxpayer must comply with the rules, procedures, and conditions prescribed by laws.

For more details, please see: https://www.thaigov.go.th/news/contents/details/46045

Interesting Deka
Deka (Supreme Court Judgement) No. 4980/2561
Between  Company Or.            Plaintiff
       The Revenue Department    Defendant
Issue: Failing to file Por.Phor. 30 within the prescribed time without reasonable cause

Issue to consider: Whether an assessment official has the power to assess fine

Fact: The Plaintiff found the irregularity of the car sale information and the amount of VAT of tax month of August. The Plaintiff asked the Revenue Department’s officials for examination. While the Plaintiff was waiting for the result of the examination, the Plaintiff filed P.P.30 form of August and paid VAT by comparing the amount of VAT of the previous tax month. However, the Plaintiff did not file and pay VAT of September and October. When the Plaintiff pursued the matter further, it was informed that the Plaintiff shall fully pay VAT including fine and surcharge according to the law. The Plaintiff argued that it is unfair. Therefore, the Plaintiff requested the official to waive fine although fine is reduced according to regulations prescribed by the Director-General with Minister’s approval.

Judgment of the Supreme Court: It is accepted that the Plaintiff found the irregularity of information and VAT amount of August and consulted the officials about the examination. However, the Plaintiff has been a VAT registrant for approximately 17 years, so it should be realized that a VAT registrant is required to file] VAT form. Since the information used for filing VAT form is under the Plaintiff’s responsibility, the Plaintiff is able to examine by itself. There is no reasonable cause for the Plaintiff to not realize the correct sale amount according to the tax invoice issued by the Plaintiff in the previous tax month. Therefore, the Defendant’s order to not waive or reduce the fine according to the Plaintiff’s request is lawful.

Legal Opinion: This Supreme Court Judgment has an interesting issue whether the delay of official’s performance is a reasonable cause for late tax filing and payment. The Court’s decision of this case is interesting. Although the Plaintiff consulted the problem with the official and asked for the examination and the examination process is late, it is not a reasonable cause for the Plaintiff to file and pay tax overdue.

The Author is of the opinion that not only can this Supreme Court Judgment be used as a reference to VAT form filing or VAT payment, but also to all type of tax filing and payment. Despite technical obstacles, the taxpayers are still required to comply with the law. However, the above legal opinions are merely an opinion based upon facts according to the case. The taxation issues are complicated, so the relevant facts and laws should be examined on a case-by-case basis. The above Supreme Court Judgment is presented as a guidance for the readers to understand and comply with tax laws.

Author: Napat Wonglimpiyarat
Translator: Achiraya Sutisoontarin

Should you require any legal advice on Thai tax law then please contact us at
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Email: napatw@dlo.co.th